Restaurant Building with Kitchen
For Sale
$395,000
422 N L Street, Harlingen, TX 78550
Commercial Sale, Harlingen, TX
Property Size2,708 SF
Lot Size0.50 Acres
Price / SF$145.86
Days on Market46
Property Features for 422 N L Street
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
27
Parking features
Off Street, Special Needs
Patio and Porch features
Patio
Exterior features
Storage, Mature Trees
Accessibility
Accessible Approach with Ramp
Appliances
Electric Water Heater, Water Heater (Other Location)
Subdivision
Hasselmeier Addition 2
Directions
Heading east on US-83 exit 175 toward Tyler Ave/Dixieland Rd. Pass Wendy's onto Tyler Ave. Turn left onto US-77 frontage Rd. Slight roght onto N T St., turn right onto Fair Park Blvd. Then make a right on west Teege Ave. and drive down until you get to L St. The building will be directly in front of you. Make a right on L street and take a left on W Jefferson Ave. which will take you to the front of the building and the paved parking.
Standard status
Active
APN
1846200020001000
Size
2,708 SF
Lot size
0.50 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
6269
Utilities
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air, Window Unit(s)
Building Details
Year built
2006
Floors in Building
1
Building materials
Aluminum Siding, Frame/Wood, Wood Siding
Roof type
Metal
Additional Structures
Storage
Listing Agency:
Encore Fine Properties
(956) 821-6170
Listed By:
Breann Fay Nelson
(956) 800-0331
Added: Aug 10
Changed: Sep 14
Last Checked: Sep 24 at 7:06AM
MLS# 455834
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,708-square-foot restaurant property sits on 0.4959 acres and was built in 2006. The building includes commercial food-service equipment such as a griddle, fryer, grill, refrigerator, freezer, three-compartment sink, cold prep table, shelving, and storage racks. A POS system and televisions are also included. Central air, window-unit cooling, electric heating, a metal roof, and a patio are part of the property’s existing improvements.
Located at 422 N L Street in Harlingen, Texas, the site also provides off-street parking, an accessible approach with ramp, mature trees, and exterior storage. The property’s restaurant configuration and installed equipment support continued food-service use.
Located at 422 N L Street in Harlingen, Texas, the site also provides off-street parking, an accessible approach with ramp, mature trees, and exterior storage. The property’s restaurant configuration and installed equipment support continued food-service use.
Key Highlights
- 2,708‑square‑foot restaurant building on 0.4959 acres
- Commercial kitchen includes griddle, fryer, grill, refrigerator, freezer, and cold prep table
- Three‑compartment sink, POS system, shelving, and storage racks included
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$27,609
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.99%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$552,180
$552.2K
Cap Rate 7%
$394,414
$394.4K
Cap Rate 9%
$306,767
$306.8K
Market Conditions
NOI Build-Up for 2,708 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$39.0K $14.40/SF
− Vacancy
−$2.2K −$0.81/SF
EGI
$36.8K $13.59/SF
− OpEx
−$9.2K −$3.40/SF
NOI
$27.6K $10.20/SF
Area
Cameron County, TX
Vacancy
5.60%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$552,180
Cap Rate 7%
$394,414
Cap Rate 9%
$306,767
Alternative Uses
Best Use
Specialty Retail
$394.4K
$345.1K – $460.2K
NOI $27,609 @ 7.0% cap · market cap 6.99%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$466.3K
$408.0K – $544.0K
NOI $32,639 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
836
Businesses Nearby
77k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 68%
Groceries 20%
Shops & Services 12%
La Michoacana Meat Market
Groceries
15,469 visits/mo
0.5 miles
Jack in the Box
Dining
15,299 visits/mo
0.5 miles
Buffalo Wild Wings
Dining
13,093 visits/mo
0.4 miles
Applebee's
Dining
12,391 visits/mo
0.5 miles
Little Caesars Pizza
Dining
11,509 visits/mo
0.5 miles
Demographics for 78550, TX
56,038
Population
22,347
Households
2.5
Avg Household Size
35
Median Age
22%
College-Educated
77%
High-School Grad
94.2 sq mi
ZIP Area
595
Density / Sq Mi
$51,524
Median Household Income
$32,065
Median Earnings
$863
Median Rent
$120,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Freestanding restaurant property with installed food-service equipment, patio space, off-street parking, and accessible ramp entry.
Where is this conventional restaurant located?
The property is located at 422 N L Street Harlingen, TX.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: 2,708‑square‑foot restaurant building on 0.4959 acres; Commercial kitchen includes griddle, fryer, grill, refrigerator, freezer, and cold prep table; Three‑compartment sink, POS system, shelving, and storage racks included
